Richmond Home Sales Report – November, 2011

November Richmond Home Sales Report

Source: RealtyLink Online

Housing Type

Active Listings

Nov Sales

Av. 3 mth

No. Months

Average Price

Detached

770

101

105

7.33

$1,060,000

Townhouse

400

76

67

5.97

$535,000

Condominiums

805

95

98

8.21

$340,000

Richmond’s total homes sale for November, 2011 at 272 units was at about the same level with the previous 3month. The total number of detached homes, townhomes and condos/apartments listed for sale totaled 1,975 was 12% lower than the previous month’s total listings at 2,245 units. The reduction was mainly due to homes taken off the market due to expiry of the listings or cancelled by the sellers due to poor market activities on their homes.

The supply of homes and the average 3 months sales produce a list to sale ratio of 7.31. This is an improvement in the ratio from the previous month of 8.43 months of inventory. The market is a BUYER MARKET which favours home buyers in term of having a wider home selection and better negotiation power to get a better price from sellers. Both the median and average home prices for the 3 housing types were lower compared to the previous months.

Current supply of Richmond Detached houses and condos are in excess supply. Home sellers who were more aggressive in reducing their selling prices had more success in selling their homes. The current month home sales is not expected to differ from November. December being a festive month typically is the lowest sales month for real estate. For home buyers, this is a good time to get into the market as there are more choices and prices are already some 5% to 7% compared to the peak some 7 months ago.

The condo market will be the most challenging for sellers and new housing developers. Resale condos are competing with new condos for home buyers. There are increasingly more new developments offering discounts, incentives and some developers are absorbing the HST to sell their inventory of homes.

The average selling prices at are already heading lower as can be seen from the prices recorded last month. Price discounting is expected to continue until the supply and demand ratio are re-balanced. Many home sellers are planning to list their homes in January and February. Home sales are expected to be much better in spring as March, April and May are the best months when home buyers and sellers are most active.

Low mortgage rates to continue

The current ultra low mortgage rates are not expected to be raised for sometime. Projection for Canada’s growth rate for 2012 had been revised lower due to the uncertainties faced by the financial markets in Europe, USA and Asia.

* months of inventory (MOI) is a ratio based on total supply against the average 3 months sale. A ratio of 6 MOI is considered a “market in balance” . A ratio much higher than 6 will result in home prices under pressure to go lower and a ratio much under 6 will result in home prices under pressure to go up.

Disclaimer: The writer assumes no liability whatsoever, for errors and/or omissions and any consequences arising either directly or indirectly from the use of information provided by this website. Any data provided are strictly for guidance and planning purposes only and may not be applicable due to ever changing market dynamics.